Tag: accounting

Small Business Accounting Tips That Will Save You Time & Money


Small business accounting is no small task—there are a lot of considerations and, if you aren’t a trained accountant, things can seem complicated and daunting. Luckily, we’ve compiled a helpful list of some small business accounting tips that will save you both time and money. 

Separate Business and Personal Expenses

This tip might seem obvious, but a lot of small business owners overlook it. A separate, dedicated bank account for business expenses will save you lots of time when it comes to figuring out deductibles. If you own an LLC or a corporation, doing this will also help limit legal exposure to business debts. 

Keep Up With Labor Costs

Labor costs make up a huge part of your expenses, sometimes up to 70% of your small business’s budget. Make sure you’re keeping track of everything in this department, including benefits and overtime. Consider hiring a professional accountant to help you with payroll taxes, since they’re separate and due at a different time than other taxes

Track Everything

Organization is key when managing small business finances. Make sure you’re very detailed with your expenses, as this will help your business maximize credits and tax write-offs. Using your business credit card will help with this, and make it easier to keep track of things. Investing in a good accounting software can help you keep track of things as well. 

Hire a Professional

It’s no secret that hiring a professional is the best way to make sure everything stays organized, accurate, and beneficial to your business. If hiring a full-time accountant isn’t in your budget at this time, consider hiring one temporarily to get things in order—or during important times of the year like tax time. 

Update Your Books

Calendar blocking is a great way to make sure you get the important things done! Block off time every week on your calendar to get your paperwork in order. After invoices and receipts pile up, it’s much harder to get them under control. Staying on top of them regularly will go a long way in keeping things streamlined. 

Plan for Major Expenses

The better you can plan, the better off your business’s finances will be. Whether it’s equipment upgrades, tax time, or staff adjustments, being prepared for larger expenses will help lessen the blow when the time comes. 

Look to the Future

In addition to looking ahead to large business expenses, it’s important to make future financial projections. While no one can truly predict the future, do your best to predict how your small business’s expenses and profits might change going forward. Consider natural forces like inflation, how you plan to grow, changes you know you’ll have to make, etc. This will help guide you in your decision-making. 

Need More Accounting Help?

Managing your small business finances is a full-time job. If you’re looking for extra help, Banks, Finley, White & Company is ready to help. We specialize in small business accounting, and can guide you through all the complicated moving parts. Contact us today to get started!